Today’s Market Summarised

Markets rebound in the day with most sectoral indices gaining back from yesterday’s fall.

Nifty opened with a big gap-up at 17,427 and tried moving up. The index struggled in the morning and fell to near 17,320 even breaking yesterday’s low. Just before noon, the market regained strength and started to move up. With some volatility, Nifty rallied up and closed the day at 17,562, up 165 points or 0.97%.

Bank Nifty opened the day with 37,262 and fell sharply. The supports at 37k and 36,800 were respected but the index broke all of these levels and moved down more than 800 points intraday. But recovery was seen across the market and Bank Nifty closed the day at 37,236, up 90 points or 0.25%.

Nifty Realty, Nifty Metal and Nifty IT bounced back from yesterday’s fall. Only Nifty Auto closed in the red today.

Asian markets stayed stable and mostly in the green, except Japan which was closed yesterday. European markets are trading well in the green currently.

News Picks

JSW Steel(+5.6%), Tata Steel(+3.1%) and UPL(+2.3%), the stocks which fell the most yesterday, closed among the top gainers today.

Oil-related stocks ONGC(+5.2%) and OIL(+7%) closed sharply in the green today. Crude oil has been on a rally internationally, and stocks related to it have been on a rally.

Bajaj Finance(+5%) and Bajaj Finserv(+3.3%) closed among the top-gainers after staying flat in yesterday’s fall.

ITC(+3.3%) continued its breakout by gaining to reach Rs 242 in the day. The stock is at its highest level since January 2020.

Auto stocks closed in the top-losers section with chip shortage continuing to be an issue for them. Maruti(-2.4%), Bajaj-Auto(-1.2%) and Hero MotoCorp(-1.3%) closed in the top losers of Nifty. Tata Motors(+1%) however moved up after saying it will increase the prices of its commercial vehicles from October 1.

SpiceJet(+1.5%) to raise up to Rs 2,500 crores by allotting equity to institutional investors. Indigo(+3%) also went up in the last hour of trade.

ITDC(+3%) to raise Rs 7,000 crores from Ashoka Hotel monetization. Hotel stocks generally closed in the green once again with Indian Hotels(+2%), EI Hotels(+1.1%), Chalet(+2.5%) and more moved up.

Godrej Industries(+4.7%) approved the issue of NCDs worth Rs 750 crores.

Four entities have shown interest to purchase a controlling stake in state-run IDBI Bank(+5.9%).

PVR(+5.9%), Mindtree(+5.5%), SAIL(+5.1%), Godrej Prop(+4.7%), PEL(+4.3%) and Can Fin Homes(+4.3%) closed among Midcap top gainers.

Markets Ahead

With the Asian markets staying in the green today morning, Nifty opened flat in the day. And once the European markets opened and shot up 1-1.5% to the green it was confirmation that our market will bounce back.

India VIX has calmed down and fell 6% today. Looks like the temporary volatility is now reduced.

Dow Jones Futures are also in the green. If the markets there also recover, we can expect our markets to do well tomorrow.

Hoping that no one got trapped in the intraday movements of the market. Even with the V-shaped recovery in Nifty, the candles being formed were very volatile.

Bank Nifty closing above 37,200 and Nifty at Friday’s closing level is some confirmation that the market has not yet turned bearish. But is it still a candle showing indecision for Bank Nifty. Keep watching the 36,500 support level in the Bank Nifty index along with 17,200 as support for Nifty.

Tomorrow’s Fed Meeting highlights are also being watched by market participants eagerly. If decisions remain along the same line as current policies, markets might jump a bit back up. 

Is it just a bounce-back before another fall? Or is it showing that bears don’t have enough strength yet? Let us know what you think in the comments section of the marketfeed app!